SPOKANE, Wash.--(BUSINESS WIRE)--Gold Reserve Inc. (TSX VENTURE:GRZ) (NYSE-MKT:GRZ) (the “Company”) is
pleased to announce today the results of the restructuring of its 5.50%
Senior Subordinated Convertible Notes due 2022 (the “Notes”). The
Company restructured approximately $101.3 million of its $102.3 million
total Notes for $33.8 million in cash, $42.2 million in equity
(representing 12,412,501 common shares at $3.40 per share), $25.3
million in new two-year Modified Notes (5.5% yield and convertible into
common shares under certain circumstances at $4.00 per share) and a
Contingent Value Right (“CVR”) to be distributed pro-rata to the
participating Note holders totaling 5.468% of any award or settlement of
the Company’s ICSID arbitration.

In the second quarter 2012, pursuant to the terms of the Indenture which
gave Note holders the right to require the Company to purchase all or a
portion of their Notes, holders elected to surrender an aggregate of
$16.9 million of the Notes to the Company for cash. Concurrently, the
Company announced a restructuring agreement (the “Restructuring
Agreement”) with its three largest Note holders, who held approximately
88% of the outstanding Notes and in the third quarter, the next largest
Note holder became a party to the Restructuring Agreement bringing the
total Notes subject to the Restructuring Agreement to approximately
98.7% of the Notes outstanding. In the third quarter, management also
offered the same restructuring terms to the holders of the remaining
1.3% of the Company’s outstanding Notes (the “Other Note Holders”).

Doug Belanger, President stated “The Board and management are pleased
that with this transaction we minimized to the extent practicable
shareholder dilution, significantly reduced the Company’s interest cost
and created positive equity going forward. This transaction is good for
all stakeholders in that it rationalizes the capital structure of the
Company, with greater certainty going forward.”

The offer to the Other Note Holders representing approximately 1.3% or
$1,080,000 in aggregate principal amount of Notes to participate in the
restructuring transaction that had been agreed to with the four largest
Note holders expired at 11:59 p.m., Eastern Time, on Friday, November
23, 2012. As of November 26, 2012, Notes in the aggregate amount of
$38,000 were tendered by the Other Note Holders. In accordance with the
terms of the offer, the Company has accepted all of the tendered Notes.

The Company’s four largest Note holders will receive, in the aggregate,
$16,875,000 in cash ($15,439,500 was previously paid in July 2012),
12,406,913 shares of the Company’s Class A common stock ($42,183,500 at
$3.40 per share), $25,308,000 principal amount of Modified Notes and
5.465% Contingent Value Right. The Other Note Holders will receive, in
the aggregate, $12,000 in cash, 5,588 shares of the Company’s Class A
common stock ($19,000 at $3.40 per share), $7,000 principal amount of
Modified Notes and .003% Contingent Value Right.

After the restructuring, $1,042,000 million principal amount of existing
Notes, $25,315,000 million principal amount of Modified Notes, 5.468%
Contingent Value Right and approximately 72,711,709 shares of Class A
common stock will be issued and outstanding.

The terms and conditions of the Offer to the Other Note Holders were set
forth in the Tender Offer Statement filed on Schedule TO, and the letter
of transmittal and the related offer materials filed as exhibits, which
were filed with the Securities and Exchange Commission on September 18,
2012, as amended and supplemented.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.

"Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release."